Personal Income up 10% (above exp's), spending 2.4%, savings rate now 20.5%... more here...

 

US Personal Income Jan: 10.0% (est 9.5%; prev 0.6%) US Personal Spending Jan: 2.4% (est 2.5%; prevR -0.4%; prev -0.2%) US Real Personal Spending Jan: 2.0% (est 2.2%; prevR -0.8%; prev -0.6%)



With the new fiscal stimulus in January, huge gain in personal income driven by gov't transfers, but compensation was also up for the 7th straight month increasing by 0.7%. Proprietor's income did fall by half a percent.  Real spending also up (after two months of contraction) but as it was not up nearly as much, savings rate shot up to over 20% (!).  Consumers are back to having a lot of dry powder.  Ex-food and energy PCE was up 0.3% m/nm (same as Dec.)   November income and spending were both revised up one tenth.  Table at the end.

On personal spending, the report does a good job of breaking that down but in general goods were up 5.8% with durables up 8.4% and non-durables 4.3%. Services more muted at 0.7%:

The $340.9 billion increase in current dollar PCE in January reflected an increase of $277.2 billion in spending for goods and a $63.7 billion increase in spending for services (table 5). Within goods, the increases were widespread across all categories, led by recreational goods and vehicles (notably, information processing equipment) as well as food and beverages, based on Census Monthly Retail Trade Survey (MRTS) data. Within services, the increase was led by spending for food services and accommodations (more than accounted for by food services), based on MRTS data. Spending for health care (led by outpatient services) also increased, reflecting data on the volume of visits as well as revenue data. Partly offsetting these increases was a decrease in housing and utilities (led by electricity and gas), reflecting data from the Energy Information Administration. 

On prices goods were up 0.7%% with durables up a tenth and non-durables one percent m/m. Services were up two tenths of a percent.




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https://sethiassociates.blogspot.com


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